ASSESSEMENT OF CURRENT STATUS, OPPO RTUNITES AND CHALLENGESOF FOREIGN DIRECT INVESTMENT ON SELECTED MANU FACURING SECTORS IN ADDIS ABABA

Abstract

The main aim of this status is to assess foreign direct investment status, challenges and opportunities in Addis Ababa and at pre implementation, implementation and operation stages of the project life cycles. Political, economic, socio cultural, technological and legal variables are given much emphasis in the study. To this end primary data are collected from 150 foreign investors and 50 investment commission staff. Any questionnaire and interview methods to make the research more reliable Secondary data considered since 2018 onwards from Ethiopian Investment commission at pre implementation, implementation and operation stages respectively. Data gathered were processed using SPSS 25 software package. Descriptive statistics was employed. All out puts were reported using frequency, percentage, mean and standard deviation results. The study has found insufficient supply of foreign exchange, getting financial loan, getting investment land, water and electricity supply as the main challenges of foreign investors. On the other hand, political stability, huge market potentials, and availability of raw materials are among the prospects foreign investors can gather because of investing in Addis Ababa. Finally, the study recommended scale upping of industrial park expansion to potential areas, formulating harmonized national investment land giving procedure with some flexibility and increasing EIC’s medium of communication that may enable to solve the observed problems and enhance the efficiency of foreign investors.